Panel declares financial emergency in Hamtramck

May 23, 2013

Written by

Detroit Free Press Lansing Bureau

LANSING — Hamtramck could be the next Michigan city with an emergency manager after a state-appointed financial review team today declared a financial emergency there.

Gov. Rick Snyder now has 10 days to make a decision on the report.

The review team was appointed April 17 after a request by city officials.

In its report to the governor, the team cited a $3.3-million general fund deficit, which exceeds 5% of total general fund revenues of just more than $16 million. The report also cited $1.6 million in delayed pension fund contributions during the last several months.

“There was ... essentially unanimous acknowledgment that despite the city’s worsening financial condition, city officials did not adequately address the condition,” the state Treasury Department said in a news release.

Emergency managers take over the power of elected officials and have additional powers, such as the ability to break contracts.

Emergency managers are in place in Detroit, Allen Park, Benton Harbor, Flint and Pontiac, and in several school districts. Ecorse is emerging from emergency management.

Hamtramck, which has about 22,000 people, was under emergency management from late 2000 until 2007.